Meanwhile, Stellantis has become the latest large-scale carmaker to revise its financial forecasts, thanks to a deterioration in the industry outlook.
The company has been struggling with weak demand in the US, a key market, where it has been forced to offer discounts in order to shift unsold stock.
It has also been facing increased competition from Chinese brands, which have been expanding aggressively abroad.
As a result, it said it expects its profit margins to be significantly lower than previously thought this year.
The announcement sent its shares tumbling. By lunchtime on Monday, the price was down more than 14%.
The problems at Stellantis and Aston Martin reflect a wider malaise in the European car industry.
On Friday, Volkswagen issued its second profit warning in three months, while it has also suggested it might have to close plants in Germany for the first time in its history.
Its German rivals Mercedes-Benz and BMW have also downgraded their profit forecasts in recent weeks.
Among the common issues are falling sales in China – until recently a highly lucrative market for expensive and profitable high-end models – coupled with growing competition from Chinese brands in other markets.
According to Matthias Schmidt of Schmidt Automotive Research, European firms have been caught out by a wave of “unsustainable” discounting by Chinese brands in their home market, which has affected sales of high-priced vehicles.
“German brands, and VW in particular, have been caught off-guard by the pace of change in China” he explains.
Source:
www.bbc.com
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